Former Iced Tea Maker Kills Plan To Acquire Bitcoin Mining Equipment

Former iced tea maker Long Blockchain Corp. is reportedly backpedaling on its previous plans to purchase 1,000 bitcoin mining rigs.

Last month, the company signed a definitive agreement to acquire ‎1,000 bitcoin mining rigs built by Chinese mining equipment manufacturer Bitmain‎. The machines were to be deployed at a data center in an experienced crypto mining center in a Nordic country without specifying which one.

Last Friday, Long Blockchain decided not to purchase the bitcoin mining equipment. Instead of buying the mining rigs, the company said it will focus on completing a merger with Stater Blockchain Ltd., a British firm that develops technology to power cryptocurrency transactions.

Shamyl Malik, head of the Long Blockchain’s Blockchain Strategy Committee, said that while the company continue to believe in the value of mining equipment to the blockchain ecosystem, the purchase of these machines was just one of the multiple strategic avenues they have been considering.

“We will continue to evaluate the purchase of mining equipment for bitcoin and other digital currencies as part of our larger blockchain initiative, which includes among other potential transactions the proposed merger with Stater,” said Malik.

Formerly known as Long Island Iced Tea Corp., the Hicksville, NY-based company is a producer of ready-to-drink iced teas. The company’s first product was made available in 2011. In December 2017, the company rebranded as Long Blockchain Corp. as part of a corporate shift towards “exploration of and investment in opportunities that leverage the benefits of blockchain technology.”